World

Russia sanctions may hurt economy, but peace matters more - Germany

BERLIN (Reuters) - Fresh sanctions on Russia may hurt the German economy, but peace is more important, German Economy Minister and Vice Chancellor Sigmar Gabriel said on Wednesday.

"We know that we may suffer economic consequences, we know that trade with Russia is not inordinately large but it has some significance," said Gabriel, adding he thought the sanctions would have an effect on Russia very quickly.

"Nonetheless at a time of war and peace, economic policy is not the main consideration," Gabriel told journalists after a meeting of the German cabinet.

The European Union and the United States on Tuesday announced further sanctions against Russia, targeting its energy, banking and defence sectors in the strongest international action yet over Moscow's support for rebels in eastern Ukraine.